Greek Bailout Doubts Arise
All the fuss today is the markets realizing that EUR 45 billion is not enough to save Greece from debt restructuring. Looking at the yield curves markets believe maturities shorter than 2 years will be paid in full. Longer duration holders could see some principal loss in debt restructuring.
Portugal off-course followed Greece lead.
Markets are down on the market action.
Chart 1. Greek Government Bond Yield Curve
Chart 2. Portugal Government Bond Yield Curve